PROPERTY SALES AND PURCHASING TIPS IN DUBAI

If you choose to use an agent, use only a RERA registered broker / agent.

When using a registered agent / broker, ensure that you have appointed them with the approved documents and that the agent has good market knowledge on pricing, availability and RERA rules and regulations.

Make sure you maintain communication with your agent. If the agent does not do what they agreed to do, terminate them and find another agent.

Inability to demonstrate that you were dealing with a registered broker could harm your defense in an instance where there is a defaulting party.

If the Property is Tenanted

The Seller must provide Original Tenancy and EJARI contract to the Buyer on the transfer date.

If the Buyer wants to move-in to the property, the Seller should apply Vacating Letter notarized and stamped by Notary Public and sent to the Tenant. This will give a tenant a 12 month notice to vacate the property after receiving the notarized letter.

The existing owner must transfer the tenant’s security deposit to the new owner upon transferring of the property. This deposit is payable back to the Tenant upon vacating the property providing it meets the condition agreed upon in the tenancy Contract. The same applies to the rent based on a prorate basis or as otherwise agreed between the Buyer and Seller.

A Booking Deposit of 10% of the property selling price may be made in the name of the Seller by the Buyer but held by the Buyer's Broker until a Sales Reservation or RERA Form F is agreed and signed by the Buyer, the Seller and witnessed by the Broker. There should be a time limit on the receipt provided by the Broker whereby failure to provide a signed MOU by all parties will result in the deposit being refunded.

A Security Deposit that is usually 10% of the selling price made by the Buyer. The basis for encashing the deposit payment should be clearly documented in the Sales Reservation Agreement which should be signed by the Buyer, the Seller and witnessed (and stamped) by a valid and approved RERA registered Broker.

Seller’s NOC Fee to the Developer which must not exceed AED 5,000

Transfer fees payable to the Dubai Land Department which is 4% of the selling price and usually payable by the Buyer or as per agreed

DEWA deposit of AED 2,000 to AED 4,000 + AED 110 by the Buyer/New Owner for re-connecting the utilities in the property

Admin fee of AED 4,000 in CASH to the Land Department to be paid by the buyer

Commission payment due to the Broker which is usually based on a minimum of 2% of the Selling Price and usually payable by the Buyer or as per agreed

From the Seller:

Original Proof of ownership of the property (Title Deed)

A copy of the Passport of the Seller(s)

A copy of Emirates ID of the Seller (s)

Original NOC from the Developer

Receipts for all payments clearing the property of any financial incumbencies (such as maintenance fees, developer fees etc); If the property is financed by a mortgage provider, there must be an NOC from the Mortgage Provider confirming that all outstanding dues are clear

From the Buyer:

A copy of the Passport of the Buyer(s) with Visa; (if Non-Resident, a copy of Dubai entry stamp)

A copy of Emirates ID of the Buyer(s)

Seller’s Manager Cheque (Sale Price of the Property)

Dubai Land Department’s 4% Manager’s Cheque

From the Agent/Broker:

Valid Copy of RERA Card for Brokers being appointed to represent the Buyer, Seller, or both

Original Signed RERA Form A (Agreement between Agent and Seller)

Original Signed RERA Form B (Agreement between Agent and Buyer)

Original Signed RERA Form F (Agreement between Seller and Buyer) * RERA Forms can be downloaded at
http://www.emart.gov.ae

In Dubai, property transfers are normally paid for in the form of a Manager's cheque and these transfers are completed at the Dubai Land Department.

'Best Practice' dictates that if a tenanted property is to be sold, the seller should provide a copy of the current tenancy contract to the Sales Listing Agent and ensure that a 'Special Condition' clause be inserted in the contract by the agent. This should detail the requirement for having the landlord (the seller) and the tenant provide a 'Property Condition Report' specifying any problems and a transfer of the tenant’s security deposit from the old landlord to the new landlord while alerting the tenant of the same.

This practice shall set clear agreements pertaining to the tenancy which is forming part of a sale agreement. Tenants need to be factored into this process and acknowledged the right of tenancy and respected, new owners need to be aware of their responsibilities and yet protected against inheriting an unforeseen problem or undeclared expense, and the landlord (the seller) must act honestly, respectfully and responsibly transferring the tenancy landlord obligations.

In real estate, everything is negotiable, and the outcome depends on the negotiator's skills, knowledge, preparation, courtesy, consideration and several other factors relating to the people, the circumstances and of course, timing of the negotiation.

*The above information is subject to change in accordance with the Land Department, Rental Committee and UAE Law. Certain recommendations and requirements are dependent on agreed terms and conditions by the parties involved in the sale.

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